Bullish (BLSH)·Q4 2025 Earnings Summary
Bullish Posts Record Revenue as Options Trading Takes Off
February 5, 2026 · by Fintool AI Agent
Bullish (NYSE: BLSH) delivered record fourth quarter results, with adjusted revenue surging 68% year-over-year to $92.5 million on the back of explosive options trading growth and continued momentum in subscription and services . The digital asset exchange beat its own guidance on SS&O revenue while keeping operating expenses in check, demonstrating significant operating leverage as the business scales.
Did Bullish Beat Earnings?
Bullish delivered a strong beat on its key operating metrics while posting a GAAP net loss due to digital asset impairment charges:
Guidance vs. Actual:
- SS&O Revenue: $54.6M vs. $47-53M guidance → Beat by 3%
- Adjusted OpEx: $48.1M vs. $48-50M guidance → In-line
The GAAP net loss of $563.6 million was driven by $319 million in impairment losses on digital assets held as intangible assets and mark-to-market adjustments that don't reflect core operating performance .
Ask Fintool AI AgentWhat Changed From Last Quarter?
The big story is options trading taking off. Bullish launched options in Q3 2025 and has already become the #2 exchange for BTC options open interest :
Key developments in Q4:
- Options momentum: Reached $2B open interest by end of Q4, surged to $4B high in early 2026, and captured 29% volume market share—now clear #2 in Bitcoin options globally
- CoinDesk Indices dominance: Won 15 of 39 digital asset focused ETF listings globally in Q4, becoming the #1 indexer by market share
- ICE partnership announced: Next week, ICE will launch futures benchmarked to CoinDesk Indices including CoinDesk 20, CoinDesk 5, and five single-token indices (BTC, ETH, SOL, XRP, and first regulated U.S. BNB exposure)
- U.S. regulatory progress: Secured transfer agent registration; actively pursuing DCO, DCM, broker-dealer, and ATS licenses
- USDAI partnership: DeFi platform with $650M+ AUM in tokenized treasury bills and GPU-backed loans with on-chain transparency
- New listings this week: Expecting to list 5 new partner assets including Fidelity's new stablecoin
What Did Management Guide?
Bullish provided FY 2026 guidance that implies continued strong growth in the recurring revenue business:
The guidance embeds significant operating leverage—SS&O revenue growing 40-59% while adjusted operating expenses grow only 8-18%. Management notably did not provide guidance on transaction revenue, which depends on market volatility and trading volumes .
2026 Strategic Priorities :
- Derivatives & U.S. expansion: Become top 2 in digital asset options; continue U.S. broker-dealer onboarding
- Tokenization of real-world assets: Leverage stablecoin success to new asset classes; obtain U.S. and international licenses
- Information services growth: Drive adoption of CoinDesk 5 and CoinDesk 20 indices; expand CoinDesk media coverage
Ask Fintool AI AgentHow Did the Stock React?
Bullish stock has been under significant pressure despite the strong operating results:
The stock touched new lows near $26.13 heading into earnings despite the company's record operating performance. The disconnect between operating fundamentals and stock price reflects broader crypto market volatility and the significant GAAP losses from digital asset impairments.
Key Management Commentary
On Options Strategy — Tom Farley, CEO :
"We stuck to our knitting. We built exactly that—one global order book, one account... And we've ripped through the competition. We've passed numbers 6, 5, 4, 3. We're now 2, we hope and believe, on our way to number 1."
On Tokenization Durability — Tom Farley, CEO :
"On the tokenization front, I do not expect to see much moderation at all. Why? Because it works. It's the ability to lend and borrow assets much more simply. It's the ability to have an immutable ledger. It's the ability to have many fewer layers of intermediaries involved in the plumbing of global financial markets."
On Regulatory Clarity Timeline — Tom Farley, CEO :
"It does feel like the bill is moving to passage... I'm actually personally hopeful and even a little bit optimistic that it could be before the summer."
On Pipeline Resilience — David Bonanno, CFO :
"Underneath the hood, we're seeing strong, strong continued growth. Frankly, looking at our internal metrics, you wouldn't be aware of the external environment."
Q&A Highlights
On 2026 SS&O Guidance Drivers (Owen Lau, Clear Street) :
- Upside case: Swift passage of U.S. infrastructure bill would unlock and accelerate SS&O pipeline
- Guidance range reflects conservative mix of expected regulatory and market-based outcomes
- Macro headwinds already baked into guidance
On February Trading Momentum : CFO Bonanno disclosed that February trading has exceeded 50% of January's entire adjusted transaction revenue in just the first few days of the month, demonstrating continued strong trading activity despite crypto price weakness.
On U.S. Pipeline (Ed Engel) :
- U.S. pipeline described as "the most dense pipeline by far" of high-quality trading customers
- Particular success with large retail brokerages seeking regulated partners not in competition with them
- Onboarding process takes several months, but creates decade-long relationships once complete
On Clarity Act Progress (Rayna Kumar, Oppenheimer) :
- Three key issues require resolution: DeFi KYC/AML requirements, stablecoin yield, and ethics/conflicts provisions
- Tom Farley has met one-on-one with nearly all senators on Senate Ag and Senate Banking
- Bullish is "broadly fine with the bill as it sits" and has been received as an "honest broker" in D.C.
On Customer Sentiment in Volatility (Joseph Vafi, Canaccord) :
- No change in tone from institutional customers despite crypto prices dropping significantly
- Tokenization investment continues independent of Bitcoin price
- Some potential recalibration expected from crypto-native firms with impaired balance sheets
Ask Fintool AI AgentFull Year 2025 Performance
The revenue mix has shifted dramatically—SS&O revenue grew from 28% of adjusted revenue in FY 2024 to 54% in FY 2025 , providing more recurring, less volatile revenue streams.
Balance Sheet & Liquidity
Digital asset holdings at December 31, 2025 :
- BTC: 23.3 BTC ($2.08B at $88,662/BTC)
- ETH: 14.2 ETH ($42M at $2,984/ETH)
- Stablecoins: $1.21B
Forward Catalysts & Risks
Near-Term Catalysts:
- ICE futures launch (next week): CoinDesk-benchmarked futures including first regulated U.S. BNB exposure
- Fidelity stablecoin listing (this week): One of 5 new partner assets being listed
- Consensus Hong Kong (next week): 300+ side events, Hong Kong Chief Executive John Lee speaking; expected to accelerate Asia pipeline
- Clarity Act passage: CEO Farley "hopeful and optimistic" it could pass before summer 2026
- Tokenized securities listing: Plans to list tokenized securities in 2026 pending regulatory approvals
Longer-Term Catalysts:
- Options trading momentum toward #1 position (currently #2 with 29% market share)
- U.S. broker-dealer onboarding creating "decade-long relationships"
- M&A opportunities as current malaise creates attractive valuations
Risks:
- Transaction revenue volatile and declined 15% YoY despite volume growth
- Competition from Deribit (still #1 in options) and Coinbase
- Crypto-native customers may slow pipeline growth as balance sheets impaired
- Digital asset price volatility creates GAAP earnings noise ($564M Q4 net loss from impairments)
- Regulatory uncertainty—three unresolved issues in Clarity Act (DeFi KYC, yield, conflicts)
Ask Fintool AI Agent